FxWirePro- Commodity Daily Update

Gold -

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $2028.54

Kijun-Sen- $2022.68

Gold has traded in a narrow range of $2039.48 and $2016 for the past three days. US Richmond fed manufacturing index dropped to -15 vs. Expected -8. The yellow metal hit a high of $2039.48 and is currently trading around $2030.75.

   According to the CME Fed watch tool, the probability of a no-rate cut in  Jan decreased to 96.90% from 97.90% a day ago.

  US dollar index-  Bullish. Minor support around 103/102.40 The near-term resistance is 103.75/104.50.

 Factors to watch for gold price action-

   Global stock market- Bullish  (negative for gold)

  US dollar index - Bullish (Bearish  for gold)

  US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $2000, a break below targets of $1970/$1956. The yellow metal faces minor resistance around $2040 and a breach above will take it to the next level of $2050/$2062/$2078.

 It is good to buy on dips around $2015-16 with SL around $1998 for TP of $2065/$2080.

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Silver-

Silver is trading higher for the second consecutive day after a massive sell-off. The minor decline in the US dollar index supports the silver price at lower levels. It trades below 21 and 55- EMA and long-term MA (200- MA) in the 4-hour chart.  Any break below $21.90 confirms a bearish continuation. A decline to $20.68/$19.90 is possible. It is facing immediate resistance around $22.85. Any break above targets $23.55/$24.  

Crude oil-  

WTI crude oil prices gained momentum on US production outage and escalation of tension in the Middle -East. Markets eye EIA crude oil inventory.

 Major resistance- $75.5/80. Significant support- $70/$68

Economic calendar

Economic calendar

Jan 24th, 2024 US Flash manufacturing PMI   (2:45 pm GMT)

                        BOC monetary policy and US Flash manufacturing PMI  (2:45 pm GMT)